Tag: extractive sector

It is difficult to achieve contract transparency in Nigeria’s extractive sector despite the various legal frameworks put in place by regulators in the oil, gas and mining industries, some civil society groups have said.

The groups, in a communique issued at the end of a two-day national multi-stakeholders’ workshop on Strengthening Civil Society Engagement in Extractive Industries Transparency Initiative organised by Publish What You Pay Nigeria, noted that industry regulations were not always complied with.

In the communique, which was signed by the National Coordinator, PWYP Nigeria, Mr. Peter Egbule, the civil society groups resolved to involve critical stakeholders in moving activities in the extractive sector forward.

Participants at the workshop were drawn from the Civil Society Steering Committee members of NEITI, the media, academia, professional bodies and the PWYP members across the country.

The representative of the PWYP International, Eric Bisil, and an EITI International Board member, Faith Nwadishi, were also in attendance at the workshop.

On the issue of transparency in the extractive sector, the the groups said, “It is difficult to achieve contract transparency in the extractive sector in Nigeria. Although there are legal frameworks that regulate contracts in the industry, they are not always complied with.”

At the workshop, participants identified areas for core advocacy in the EITI validation process in Nigeria as accountability in all transactions, especially sub-national payments and transfers; data accessibility; CSO participation; contract transparency, community engagement; and amendment of the Land Use Act.

They also observed that Nigerians found it difficult to know the exact quantity of crude the country was producing, adding that tax incentives were granted to companies without cost benefit analysis.

They further stated that oil theft was not limited to illegal refining, as international oil companies were also culpable of oil theft in Nigeria.

The CSOs observed that they did not engage the IOCs and mining companies as much as they engaged the government, adding that EITI standards did not have adequate provision for human rights protection.

On recommendations, they said that government and the citizens should know the exact quantity of crude produced and lifted daily, adding that apart from transparency, environmental and human rights issues must begin to dominate discourse around EITI standards.

The communique reads in part, “The civil society needs to demand accountability alongside their strong demand for transparency. The CSOs should make sure all facts are cross-checked and are correct before engaging in advocacy. Host communities should be directly involved in extractive contracts negotiations.

“Host communities should participate in developing Community Development Agreements. In mining, child rights protection must be given utmost priority henceforth. Environmental impact audit should be participatory. There should be standard of measurement for solid minerals.

“There is the need to amend the constitution to allow states to co-own and manage solid minerals in their domains. Governments should harmonise and address the issue of double taxation in the mining sector. Unlicensed miners should be formalised, form cooperatives and obtain licences to mine.”

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